Wichita State University’s Center for Real Estate is forecasting that Kansas home values will continue to appreciate in 2024.
The forecast was released Thursday by CRE director, Dr. Stan Longhofer. He said the inventory of homes available for sale is very limited, and as a result the market still favors sellers despite the softening of demand due to higher mortgage rates.
Longhofer presented the forecast in Manhattan to the Kansas Association of Realtors Annual Conference. It calls for home sales to fall slightly in Wichita and remain flat statewide next year, and new home construction activity is also expected to be down.
Kansas Statewide Forecast
- Home sales – Home sales activity across Kansas continued to decline this year, constrained by the shortage of inventory. Sales are expected to end the year down 12.4% at 35,640 units and then remain essentially flat in 2024.
- Construction –New single-family building permits in Kansas are expected to drop by 18.4% this year to 4,700 units. Permitting activity should rebound by 4% to 4,890 units if mortgage rates fall next year as expected.
- Home prices – Tight inventories are continuing to put upward pressure on home prices across the state despite weaker demand. Consequently, Kansas home prices are expected to increase by 5.5% this year, followed by another 3.5% increase in 2024.
Wichita Forecast
- Home sales – Weaker demand and tight inventories are impeding sales growth in the Wichita area. Sales should end the year down 10.4% at 9,470 units and continue to fall in 2024 to 9,390 units.
- Construction – New home construction activity in the Wichita area is expected to fall 7.2% this year to 1,255 new single-family permits. In 2024, permitting activity should increase by 8.8% to 1,365 units if mortgage rates fall as expected.
- Home prices – Wichita home prices will continue to appreciate in the face of limited inventory, but at a more typical rate. Home values should rise by 4.2% this year, followed by another 3.4% increase in 2024.
